Indigo tips

Indian carriers have occupied a lion’s share of international air traffic, which is more than pre-Covid times, as per data released by India’s aviation watchdog Directorate General of Civil Aviation (DGCA). This is testament to the fact that India could rank among the top three markets for outbound travel in the coming years. Leading this expansion in market share in low-cost carrier Indigo. Passengers carried on international flights operated by Indian carriers accounted for 43.5 percent of total overseas travel in the fourth quarter of 2022, up from 39.2 percent in the corresponding period of 2019. In 2020, during the same period, the market share of Indian carriers rose to 65.3 percent, and in 2021, the share of Indian carriers in the total international passenger traffic stands at 49.6 percent. Out of the 30 Indian cities from where international passengers embark/disembark, five Indian cities accounted for approximately 70.2 percent of international passenger traffic. Delhi tops the position in the category with a share of 28.3 percent, followed by Mumbai at 19.8 percent share and Chennai at 8.5 percent share). 

India will boost Ayush treatment — indigenous medicine and associated treatment techniques — through health tourism, informed Ayush minister Sarbananda Sonowal. Set up in 2014, the Ayush ministry is responsible for developing education, research and propagation of traditional medicine systems in India. The government has been making efforts to boost traditional medicines for international tourists visiting India for treatments under Ayush methods — ayurveda, yoga, naturopathy, unani, siddha and homeopathy, among others. Earlier this year, the Ayush ministry had signed a memorandum of understanding with the tourism ministry’s India Tourism Development Corporation (ITDC) to work together for the promotion of medical value travel (MVT) in Ayurveda and other traditional systems of medicine. The Indian medical value travel market size is valued at $5–6 billion and is expected to grow to $13 billion by 2026. With 5,00,000 international patients annually, India is poised for a giant leap in medical tourism on the back of soaring cost of treatment in the West and the Russia-Ukraine war driving more patients for medical care to the country. In addition, the government’s initiatives under the ‘Heal in India’ scheme — of accrediting Ayush centers and launching Ayush e-visa — is also expected to fuel medical tourism.

India plans to open up to 50 new tourism destinations, promote green tourism, launch a publicity campaign in overseas markets and operationalize 59 new air routes during its presidency of the G20 this year, said Arvind Singh, secretary at the ministry of tourism. “India’s tourism sector is showing one of the strongest recoveries in the Asia Pacific region. Despite the challenges posed by the pandemic, the country registered 6.19 million foreign tourist arrivals in 2022 — a growth of 305 percent as compared to 1.52 million in 2021,” he said while speaking at the G20 Tourism Expo held in the north Indian state of Rajasthan. “We have recommended 59 new routes to the ministry of civil aviation under the regional air connectivity scheme which has been successful. Of this, 51 routes are already operational,” Singh added. The government is pushing green initiatives to promote responsible tourism in the country and authorities plan to ensure small businesses have the resources for green investments and to create local jobs. 

India is on the cusp of an aviation boom as many call the country the “most promising aviation market” globally post-Covid.

India’s domestic air traffic has hit a record high with 456,082 passengers flying on a single day, the civil aviation ministry said in a tweet. The ministry’s data shows a total of 456,082 passengers flew via 2,978 flights on April 30 and there were a total of 5,947 flight movements. “Indian domestic air travel hits new high, surpasses pre-Covid average,” it tweeted. The ministry referenced the May 1 numbers, said 448,248 passengers had taken to the skies via 2,936 flights. The rebound in India’s aviation industry comes after heavy losses faced by the industry in the past Covid-hit years. The global airline trade body, the International Air Transport Association’s latest market analysis report shows India is in the process of becoming a key global aviation market outpacing other thriving markets like the U.S., China, and Japan in passenger load factor at 81.6 percent in February 2023. With India’s air passenger traffic expected to reach 395 million in 2023-24, the country seems to have solidified its position as the world’s third largest aviation market. Credit rating agency ICRA had also recently revised its outlook on the Indian aviation industry to stable from negative due to the fast-paced recovery in domestic passenger traffic. Indian airlines have witnessed an annual growth of 51.7 percentin passenger traffic during January-March 2023 as compared to the corresponding period last year, according to Indian aviation watchdog Directorate General of Civil Aviation. Domestic airlines carried 375.04 lakh passengers between January-March 2023, as against 247.23 lakh in the same period last year. 

Tata Group-owned Air India’s low-cost carrier subsidiary Air India Express has hired over 280 pilots and 250 cabin crew during a recent recruitment drive conducted across Delhi, Mumbai and Bengaluru. Approximately 300 pilots participated in the selection process conducted during the drive, the airline said. Air India Express said it has been actively focusing on strengthening its workforce since October last year, targeting vacancies for pilots and cabin crew members. In addition to the major metros, the airline has also been conducting walk-in recruitment drives in other cities and towns for cabin crew aspirants to meet the growing demand of its operations. Mainline carrier Air India also recently announced that it would be hiring more than 1,000 pilots, including captains and trainers, to support its fleet expansion plans. Air India Express’ hiring move comes during a turbulent period as crisis-hit carrier Go First becomes the second airline — after Jet Airways — in the past three years to halt operations. Recently, Go First was granted bankruptcy protection after it plunged into a financial crisis, sparked by what it called “faulty” Pratt & Whitney engines that grounded about half of its 54 Airbus A320neos.

Global aviation leasing watchdog Aviation Working Group — that monitors leasing and financing laws on behalf of planemakers and lessors — has placed India on a watchlist with a negative outlook. Citing India’s failure to comply with international aircraft repossession norms after cash-strapped airline Go First was granted bankruptcy protection, the UK-based entity’s outlook falls under the Cape Town Convention, an international treaty on plane repossessions. India’s score has been reduced to 3 from 3.5 earlier. The move could translate into higher leasing costs for other Indian carriers. India’s inability to process deregistration applications for aircraft, whose leases got terminated before a freeze was imposed, resulted in a negative outlook, the watchdog said in a notice. Go First’s lessors include SMBC Aviation Capital, CDB Aviation’s GY Aviation Leasing, Jackson Square Aviation and Bank of China Aviation. The inability to repossess Go First’s planes in a timely manner comes as Indian air travel is booming and local carriers, which regularly turn to lessors to help finance plane purchases, have ordered hundreds of new jets. Go First filed for bankruptcy protection last week, blaming “faulty” Pratt & Whitney engines for the grounding of about half its 54 Airbus A320neos. The airline is only the latest — after the failures of Jet Airways and Kingfisher Airlines — struggling to stay afloat in an increasingly competitive market.

Nearly 92 percent Indians intend to explore domestic destinations during the summer, making coastal state Goa and Manali in the north Indian state of Himachal Pradesh as their top beach and hill vacation spots respectively, according to Oyo’s Summer Vacation Index 2023. “India’s favorite mountain destination is Manali, followed by Kashmir, Mcleod Ganj, Ooty and Coorg. Oyo hotels in Manali continue to see an uptick in demand as summer travel gains pace,” the company said in a statement. Respondents to the survey also showed a strong inclination towards exploring offbeat and lesser-known destinations. “Mawlynnong in Meghalaya and Ziro Valley in Arunachal Pradesh stood out as the top offbeat choices. Following closely behind was Valiyaparamba in Kerala,” Oyo added. The survey also found that 13 percent of respondents wished to travel to pilgrimage destinations, with Kedarnath occupying the top spot followed by Vaishno Devi and Varanasi. “This surge in travel demand is a promising sign for the growth and development of the Indian travel and hospitality industry,” said Oyo’s Chief Service Officer Shreerang Godbole. A noticeable trend that emerged in the aftermath of Covid is the preference for shorter trips and rejuvenating staycations of 1-3 days, he said. The survey is based on responses of over 15,000 people across India via the Oyo app. 

Nearly 51 percent of Indians have fallen victim to online scams while trying to book holidays to save money, according to digital security company McAfee Corp’s Safer Summer Holidays travel report. Amid the financial pressures of today’s economic environment, Indians are more likely to seek out a bargain deal online (54 percent), move quickly to snap up a deal (50 percent), try a new booking site (44 percent) and even a new destination (47 percent), to save money, the report said. Travel scams can take many forms, with the report finding 27 percent of Indians have been tricked into making payments through fraudulent platforms and 36 percent have had their identity stolen when booking online. Of this portion, 13 percent entered passport information and 23 percent provided other personally identifiable information to a fake website, it said. Overall, 59 percent of Indians are estimated to be more concerned about digital threats than physical ones, such as being pickpocketed, and 94 percent of Indian adults hold either some or high concern about their identity being compromised as part of their travel, the report noted. The report is based on a survey of 7,000 people across seven countries, including 1,010 from India. Earlier in March, the Google pages of many hotels — including premier properties — in the Himalayan hill towns of Darjeeling and Kalimpong in West Bengal were defaced.

Getting its first overhaul in 14 years, online travel agency Cleartrip unveiled a revamped version of its booking tool for agents. With what Cleartrip describes as a user-friendly design and round-the-clock support center, AgentBox 2.0 enables travel agents to book over 100 airlines, more than 500,000 hotels, exclusive holiday packages, group bookings, and meetings, incentives, conferences and exhibitions. “While the earlier version, first introduced in 2009, was more about making agents familiar with online adoption, the upgraded tool focuses heavily on the backend stack, offering a suite of products including flights, hotels, packages, buses and trains,” said Sukesh Shetty, head of B2B at Cleartrip. One of the reasons why the tool was never upgraded after 2009, he said, was because the company was so extensively concentrated on business-to-consumer that business-to-business was just an ancillary product for Cleartrip. “We want to be a catalyst in agents’ growth and not just another platform provider,” Shetty added. Additionally, Cleartrip registered 70 percent growth in monthly agent transactions and onboarded over 5,000 agents in the financial year 2022. The company also reported a 200 percent surge in summer travel bookings compared to the same period last year.

Good morning from Skift. It’s Wednesday, June 7. Here’s what you need to know about the business of travel today.

Cash-strapped airline Go First said it would raise salaries in an effort to retain workers during the ongoing insolvency proceedings that has forced the airline to temporarily suspend its operations since May 3. It said it would raise captains’ monthly salariesby $1,211; first officers will get a $605 increase. The additional pay along with their existing salary, which the airline calls a retention allowance, will go into effect on June 1, Go Air said in an internal note. The airline has also offered the allowance for pilots who have recently resigned, but are willing to “withdraw their resignations by June 15.” Go First further noted that it would soon roll out a “longevity bonus” to reward its long-serving staff members. The note also added that “if things shape up as per the present progress and plan, it won’t be long before we will be flying again which will also enable us to be regular on salary payments.” On Monday, Go First discussed revival plans with the officials of Indian aviation watchdog Directorate General of Civil Aviation where the airline’s management team presented the roadmap for the revival of operations. Last week, the regulator asked the crisis-hit airline to submit the status of availability of operational aircraft, pilots and other personnel, maintenance arrangements and funding, among other details. 

India’s domestic air passenger traffic was strong in May – 15 percent higher than a year earlier and 8 percent higher than pre-Covid levels, according to ICRA’s monthly report on the country’s aviation industry. The traffic was estimated at 13.18 million for May, 2.3 percent up from April. The growth in traffic comes even as cash-strapped airline Go First suspended its flights on May 3 and is yet to restart operations.Airlines’ capacity was higher by about 1.4 percent. The international passenger traffic for Indian carriers for the financial year 2023 stood at approximately 23.94 million, improving from the pre-Covid levels of about 22.72 million. 

Airfares in India have been soaring this year and a new report confirms the trend.

The committee of creditors of troubled airline Go First recently had its first meeting and has reportedly decided to replace the team in charge of resolving the airline’s financial problems. The committee wants to have complete control over the process of finding a solution for Go First.

Europe’s Airbus secured a historic deal on Monday involving the most jets ever bought by a single airline, with an order for 500 narrowbody jets from Indian budget carrier IndiGo on the opening day of the Paris Airshow.

Good morning from Skift. It’s Wednesday, June 21. Here’s what you need to know about the business of travel today.

India’s travel and tourism sector is poised to contribute $200 billion (Rs16.5 trillion) to the country’s economy in 2023, just 3.5 percent below 2019, according to the World Travel and Tourism Council (WTTC). The sector is also set to create over 1.6 million additional jobs this year, nearly restoring the employment levels lost during the Covid-19 pandemic to reach almost 39 million.

The first Paris Airshow in four years has clocked up billions of dollars in commercial jet orders and offered some respite for suppliers as air travel springs back sharply from the pandemic.

Antitrust regulator Competition Commission of India (CCI) is scrutinizing Tata Group-owned Air India’s planned merger with Vistara over concerns about competition in the aviation sector. The watchdog has issued a show-cause notice to Air India to explain its position and asked the company for clarification on why the merger should not be investigated.

In a race to bring pilots onboard, India’s newest airline Akasa Air has reportedly raised pilots’ salary by up to 40% amid Tata-owned Air India and budget carrier IndiGo’s massive expansion plans with orders for hundreds of new aircraft.